(Answered) Treat each case separately your answers should

Management Studies

Treat each case separately. Your answers should be "increases", "decreases", or "not affected". *Hint: you need to use a formula that relates those variables.

a. What would happen to the U.S. real exchange rate if inflation is higher in Turkey, Ceteris Paribus.

b. What happened to the price level in Russia if the U.S real exchange rate appreciated, Ceteris Paribus.

c. What happens to the U.S. nominal exchange rate if the price level in the U.S. decreases, Ceteris Paribus.

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